Trump Tariff Pause Left CEOs Asking: What Happens in 90 Days?/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump’s 90-day pause on global tariffs has sparked market optimism but left CEOs confused about long-term trade policy. With tariffs on China still soaring to 145%, businesses face rising costs, planning paralysis, and weakening demand. Executives are now anxiously asking: What happens after the pause?
Trump’s Tariff Pause Sparks CEO Uncertainty: Quick Looks
- Global stocks rallied after Trump announced a 90-day pause on most tariffs.
- Executives remain concerned over long-term policy and lack of clarity.
- China tariffs remain at 145%, pressuring supply chains and tech firms like Apple.
- Companies like GM, Porsche, and IKEA are stockpiling goods or adjusting pricing.
- Weakened U.S. consumer confidence is hurting retail sectors like footwear and furnishings.
- Weekly shoe sales are down 9.5% since Trump’s inauguration.
- Volkswagen posted weak earnings, blaming U.S.-bound car costs.
- European Union paused retaliation for 90 days to support talks.
- Construction firms like Serbia’s Testeral are warning of potential layoffs.
- Executives say the pause adds planning uncertainty, not relief.
Trump Tariff Pause Left CEOs Asking: What Happens in 90 Days?
Deep Look
President Donald Trump’s surprise 90-day pause on new tariffs has temporarily calmed markets but done little to reassure corporate leaders, who are now grappling with rising costs, shifting strategies, and a cloudy long-term outlook.
The announcement, which came Wednesday in a dramatic reversal of Trump’s global tariff blitz, excludes key sectors like aluminum, steel, and autos, and raises duties on Chinese imports to a staggering 145%. That escalation—clarified after Trump initially cited 125%—has stoked confusion and concern among executives with global operations.
While global markets surged on the news—buoyed by hopes of negotiated resolutions—business leaders say the move only deepens the uncertainty. “A 90-day pause on tariffs, while framed as temporary relief, creates considerable uncertainty for businesses,” said Anita Wright, a financial planner at Bolton James.
The confusion is particularly acute for companies with multi-national supply chains, now scrambling to assess cost impacts and price adjustments. Firms like Apple have taken drastic measures: the tech giant has reportedly chartered cargo flights to ship up to 1.5 million iPhones from India to avoid Chinese tariffs. Analysts warn U.S. iPhone prices could surge given Apple’s reliance on Chinese manufacturing.
Others are already feeling the sting. Warner Bros. Discovery’s stock fell 13.5%, and Disney dropped 7.6%, after China announced it would “appropriately reduce” the number of U.S. films it imports, citing America’s aggressive tariff stance.
A China Film Administration spokesperson said audiences would find U.S. movies “less palatable” given the political climate, adding yet another layer of non-tariff retaliation in the growing economic feud.
On Thursday, the European Union responded by pausing its planned €21 billion in countermeasures, signaling a willingness to negotiate—but for executives, the lack of consistency in U.S. policy has made strategic planning nearly impossible.
“Global trade flows are complex, and the conditions for cross-border trade are changing rapidly,” said Germany-based chemical giant BASF, which noted its direct exposure is limited due to local production but acknowledged the indirect demand impact remains unpredictable.
Retail and automotive sectors are also feeling pressure. A weekly industry survey by the Footwear Distributors and Retailers of America showed in-store shoe sales are down 9.5% year-over-year in the 11 weeks since Trump took office. Brands like Nike, Adidas, Skechers, and Walmart are among those affected.
Amazon shoppers can likely expect some prices to rise due to the ongoing global trade war, the company’s CEO admitted.
The online retailer’s network of third-party sellers “will pass that cost on,” Andy Jassy said Thursday on CNBC, in response to the impact of tariffs affecting product prices. “Depending what country you’re in, you don’t have 50% extra margin that you can play with.”
Amazon (AMZN) shares fell 3% at the opening, mirroring a larger sell-off in the markets.
Even global carmakers are rethinking operations. Volkswagen issued a profit warning, citing unexpected charges from cars shipped to the U.S. Meanwhile, General Motors, Porsche, and Mercedes-Benz have begun stockpiling vehicles in the U.S. to stay ahead of potential tariff expansions.
“Companies are likely to remain hesitant to make spending or hiring commitments without clarity on long-term trade policy,” said Wright. Trump’s “Made in America” push may be well-intentioned, but without predictability, it deters long-term investment.
In the construction sector, Serbian manufacturer Testeral warned it might have to lay off workers if aluminum tariffs continue. The company, which produces aluminum and PVC for the European construction market, said long-term contracts prevent it from raising prices, making the tariffs a direct threat to operations.
“This poses a significant risk to our company at present,” said CEO Sanja Stanimirovic, noting the firm employs 120 full-time and 80 part-time staff.
Home furnishing retailer IKEA is also watching closely. “It’s too early to say how tariffs will affect pricing,” said a spokesperson for Inter IKEA, which oversees product supply for franchisees worldwide. “But we’re monitoring closely and evaluating how the situation evolves.”
The uncertainty comes at a time when consumer sentiment is declining, and global economists are warning of recession risks. The 90-day pause may buy time for diplomacy, but it offers no guarantees—and no stability—for businesses planning their 2025 strategies.
Next week’s corporate earnings season will shed further light on the real economic impact. Early reports from global heavyweights like LVMH, ASML, and L’Oréal are expected to include cautious outlooks, particularly from those with significant U.S.-China exposure.
In the meantime, companies are operating in limbo, wondering what the end of July might bring.
“Tariff fatigue” is setting in, and business leaders are increasingly concerned that short-term policy shifts may become the new normal.
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